Russia’s manufacturing activity in January
According to Markit Economics, Russia’s manufacturing PMI (purchasing managers’ index) improved marginally between December 2017 and January 2018, to 52.1 from 52.0. The January figure met the market estimate of 52.0 and was the strongest reading since July 2017.
Factors affecting Russia’s manufacturing PMI in January were as follows:
- production volume and output improved at a stronger rate
- new business orders and factory output rose at a faster rate
- export orders in the manufacturing sector rose
- employment in the manufacturing sector contracted
Russia’s business sentiment index also strengthened to a four-month high in January 2018, and strong global growth drove demand for crude oil, boosting oil prices by 7.1% in January 2018. The United States Oil ETF (USO), which tracks the performance of crude oil, rose 8%. As crude oil is an important part of Russia’s economy, the economy improved.